LPG prices likely to rise Rs15 per kg

Saudi contract price jumps to record high at $1,028 per ton.

ISLAMABAD: Liquefied petroleum gas (LPG) prices are likely to go up by Rs15 per kg in line with Saudi Aramco contract price, which soared to a record high of $1,028 per ton on Monday, up $142 in a month, industry people say.

Domestic LPG prices, which are linked with the Saudi Aramco price, are expected to rise by at least Rs15,000 per ton to Rs107,000 per ton with effect from February 3.

According to a statement issued by the All Pakistan LPG Association on Tuesday, the price of a domestic LPG cylinder (11.8 kg) will rise by Rs177 and commercial cylinder (45.4 kg) by Rs681.

“Retail price can jump to Rs155-160 per kg while prices for domestic and commercial cylinders will increase from Rs1,650 to Rs1,830 and from Rs6,356 to Rs7,035 respectively,” the association said.

“We urge the government to reconsider the imposition of petroleum levy on local LPG, which can further increase prices,” said Belal Jabbar, spokesman for the LPG Association.

On January 16, the government imposed petroleum levy at the rate of Rs11,486 per ton on domestic LPG production in order to increase the prices and bring them at par with those of imports.

According to Jabbar, LPG imports dropped to around 12,000 tons in January compared to 17,000 tons in December.

Published in The Express Tribune, February 1^st, 2012.